Supplier Federal-Mogul Corp. cut 2,500 jobs in the first quarter while the auto supplier widened its net loss and saw revenue drop 33 percent.
The supplier of powertrain and safety components posted a $101 million net loss on revenue of $1.24 billion in the quarter, compared with a net loss of $31 million on revenue of $1.86 billion for the same period last year.
First quarter revenue for the supplier dropped 33 percent from a year ago as car and truck production dropped 56 percent in the United States and 41 percent in Europe.
Federal-Mogul also logged $38 million in restructuring charges on the elimination of 2,500 jobs and two U.S. plant closures in the quarter. More cuts are likely as the company expects to gain additional momentum with this strategy in subsequent quarters.
The cuts were part of plans announced in December to shed about 4,600 jobs in 2009, on top of roughly 4,000 job cuts the company announced in September.
About 40,000 workers were employed by the supplier at the end of the first quarter, down 20 percent from the first quarter of 2008.